Cisco, a networking hardware giant, has been expanding its cloud computing and software tools to help its clients run their networks.

J.P. Morgan analysts said in a report: “We understand the strategic rationale behind the deal and recognize the growing importance of wireless LAN and cloud management,” though the analysts questioned the price given the number of Meraki competitors. The analysts added that “Unsurprisingly, Cisco has taken an aggressive approach to acquiring software oriented companies,” noting that Meraki is its 7th straight deal in software